Budget
We are committed to building the new central library within our available funding sources without requesting additional levy increases.
The project budget is $134 million. The project budget includes:
- land purchase
- site development
- professional services
- construction
- furniture, fixtures and equipment
- contingency
- taxes
Addressing Record Inflation & Supply Chain Disruption
Since 2019, project costs have increased due to inflation and supply chain disruptions following the COVID pandemic. This has placed significant financial pressure on the project. SPL continues to work aggressively to mitigate the impact of cost increases.
Some of the actions we have taken to manage cost increases are:
- reallocating funds within the project budget,
- redesigning the library and reducing its size to lower construction costs,
- descoping some equipment from the project, which we have identified alternate funding sources for,
- changing our procurement methodology,
- continuing to apply for grants and seek alternative funding sources and
- continuing to work with our general contractor, architects, engineers and design-assist trades to find additional cost savings.
Despite budget pressure we remain confident we can deliver this capital project within or close to the current budget within our resources.
Procurement Methodology: Construction Management
This project is proceeding using construction management procurement and sequential tendering. In consultation with industry and the City of Saskatoon, we believe this is the most cost-effective way to deliver the new central library project. The revision of the construction documents will occur concurrently in stages aligned with the construction schedule. At the end of the redesign, we will convert the construction contract to a stipulated sum. This methodology has multiple advantages that will assist us in controlling costs:
- The general contractor is engaged early and works collaboratively with the design and engineering teams.
- We are working with design-assist trades throughout the planning process, which improves our cost estimate accuracy. These are the organizations that will build the library.
- Sequential tendering enables us to achieve scheduling efficiency, reduce costs and mitigate escalation impacts.